Cost Processes
Project Selection
Cost Terms
Cost Estimating
Earned Value Mgmt
100
Main outputs are: Activity Cost Estimates Basis of Estimates
What is the Estimate Costs process?
100
NEBT / Total Investment OR NEAT / Total Investment?
What is the Return on Investment formula
100
Do not consider these costs when making future project decisions.
What are Sunk Costs?
100
Three of the Estimate Costs Tools and Techniques.
What are: Expert Judgment, Analogous Estimating, Parametric Estimating, Bottom-Up Estimating, Three-Point Estimate, Reserve Analysis, Cost of Quality, Project Management Estimating Software, Vendor Bid Analysis?
100
Technique for measuring the progress of a project by looking at its scope and cost in an integrated manner.
What is Earn Value Management?
200
Main Inputs are: Scope Baseline, Project Schedule, HR Plan, Risk Register
What is the Estimate Cost Process?
200
Sum of all cashflows discounted based on time and interest rate
What is the Net Present Value (NPV)?
200
The process of devaluing a capital asset in the tax system.
What is Depreciation?
200
Type of estimate that is usually a total time or cost based on a subject matter expert's experience.
What is Analogous (Top Down) Estimate
200
The amount you expect the project to cost
What is Budget at Completion (BAC) aka Performance Baseline?
300
Main outputs are: Cost Performance Baseline Project Funding Requirements
What is the Determine Budget process?
300
The interest rate that causes the NPV to be zero.
What is the Internal Rate of Return (IRR)?
300
Another name for straightline depreciation.
What is Standard Depreciation?
300
This estimate involves using a computerized program to simulate different variables associated with project outcome.
What is Computerized / Monte Carlo estimating
300
A measurement of the progress of a project and the basis for cost analysis, including any work started ahead of schedule.
What is Earned Value (EV) aka Budgeted Cost of Work Performed (BCWP)?
400
Tools and Techniques are: Earned Value Measurement, Forecasting, To-complete Performance Index (TCPI), Performance Reviews, Variance Analysis, Project Management Software
What is the Control Costs process?
400
The time required for the net return of a project to equal it's total investment
What is the Payback Period?
400
Sum of Years Digits and Double Declining Balance (DDB)?
What are the two forms of Accelerated Depreciation
400
Estimating the cost to build a house based solely on square footage.
What is Parametric estimating?
400
An efficiency indicator that denotes the amount of work done at a single point in time 0.67 means that 67% of the work was scheduled to be done has been done. EV / PV
What is the Schedule Performance Index (SPI)?
500
Main inputs are: Activity Cost Estimates, Basis of Estimates, Scope Baseline, Project Schedule, Resource Calendars, Contracts
What is the Determine Budget process?
500
The project selection and analysis technique that involves comparing the benefit to the cost of the initiative.
What is the Benefit Cost Ratio (BCR)?
500
The process of examining all the costs associated with a project and its product once it goes into production
What is Life Cycle Costing?
500
The formula for Three-Point Estimate
What is (B + 4*M + W)/6 ?
500
An efficiency indicator that denotes the return on each dollar spent at a single point in time. 0.5 means that the project is getting 50 cents of work done for every dollar spent. EV / AC
What is the Cost Performance Index (CPI)?
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